New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-06-25
FOREIGN TRADE and INVESTMENTS.


Another monthly statement of foreign COM
mcrcc rivals the remarkable return for April in
significant interest. In that month the excess
of merchandise imports over exports was
Sl5 973, 975, and it now appears that in May
the excess Of imports over exports was
SIj.233.67j. Thus the avowed value of i'm
ports at foreign ports during only two months
has exceeded the declared value OF exports in
United States ports by $31, 100000. But it
has been a notable fact that the real value OF
foreign imports has exceeded the avowed or in
voiced value during the recent months more
largely than at any other time for years. In
former years commercial authorities were &C
customcd to allow about $lOOOOOOO per
month for undervaluations Of imports, profits
Of foreign importers, freght-moncy and inter-
est due abroad. Apparently this allowance
should now be even larger.
The amount of American securities held In
Europe certainly increased materially last fall.
whom the course of foreign exchange was re-
vcrscd in July, and $37, 100000 OF gold came
this way not In the settlement q any discover
able merchandise balance. Many OF the SUCKS
and bonds taken for foreign account are paying
interest or dividends, so that whatever tho IN
tercst payable monthly before that tune may
have been. it certainly was increased. The
disclosures Of Custom House officials and Amer
can consuls abroad have recently called atten-
ton TO the Unprecedented differentiation OF
imports, and evidence to the same effect came
ont after the failure Of several German houses
engaged in American trade. Whatever the
proper allowance for INTERPRETATIONS may nave
been in previous years. IL must now be larger
Vet il only the accustomed $l0,0OO,OOO per
month be allowed for these items, the mer
cbandisc received here and claims against us
would appear to have exceeded in real va'ue
the merchandise sent abroad by more than
sol OOO. 900 in two months, and yet exchange
has since fallen, and even IN May imports Vi
specie slightly exceed exports.
Has this country been running into deot 10
EuIopcQ In one sense, evidently; II EUROPE
has taken more securities than 1t has sent back
within the past two months that means an IN
crease of foreign Indebtedness Also if Europe
has made large loans in this country III real
estate mortgages, or to manufacturing c"VO'
or mining companies that means an increase
~ Indebtedness. The situation is a little dI-
fcrent if European capital has taken utlcs 10
largo tracts of real estate to multitude oi
town lots sold at the fancy prices recently
preyailing. or to new manufacturing establish
ments and mines Recent statements In " nc
london Economist show that there has been
a noteworthy movement Of capital OF that ma
turc. The foreign buyers have made perma-
nent investment in that case some OF Them
possibly, more permanent than was supposed
II is a matter of some Importance that III tniS
case the foreign capital which has come hither
cannot be Withdrawn at will, as capital put
into salablc American securities can. Inc
lender cannot even foreclosc the mortgage
until after an interest period has passed ana
1efault has been made. The purchaser can
draw out only when he can find somebody else
TO buy 1t is probable that the most pulling
phenomena Of the recent foreign trade ana
exchange movements have this explanation
II so tho danger of sudden disturbance by
withdrawal Of foreign capital Is to that extent
less than those have supposed who behevcd
hat foreigners were sending goods here IN
exchange for stocks and bonds.
7, f. only TOO sadly evident, from Tho Albany |